By Toni Weeks
San Luis Obispo, Calif., Feb. 19 – JPMorgan Chase & Co. priced $2.33 million of autocallable contingent interest notes due Feb. 22, 2016 linked to the common stock of VMWare, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes will pay a contingent coupon at an annual rate of 7% if VMWare shares close at or above the trigger level, 70% of the initial share price, on the review date for that quarter.
The notes will be automatically called at par plus the contingent coupon if VMWare shares close at or above the initial share price on any review date other than the first and final review dates.
A trigger event occurs if the closing share price is less than the 70% trigger level on any day during the life of the notes.
If the notes are not called and the final share price is greater than or equal to the initial level or a trigger event has not occurred, the payout at maturity will be par plus the final contingent interest payment. If the final stock price is less than the initial value and a trigger event has occurred, the payout will be a number of VMWare shares equal to $1,000 divided by the initial price or, at the issuer’s option, the cash value of those shares.
J.P. Morgan Securities LLC is the agent.
| Issuer: | JPMorgan Chase & Co.
|
| Issue: | Autocallable contingent interest notes
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| Underlying stock: | VMWare, Inc. (Symbol: VMW)
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| Amount: | $2,332,000
|
| Maturity: | Feb. 22, 2016
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| Coupon: | 7%, payable quarterly if stock closes at or above trigger price on review date for that quarter
|
| Price: | Par of $1,000
|
| Payout at maturity: | If stock return is zero or negative or a trigger event has not occurred, par plus final contingent interest payment; if final price is less than initial price and a trigger event has occurred, 11.91327 VMWare shares or, at issuer’s option, cash value of those shares
|
| Trigger event: | Occurs if closing share price is below trigger price on any day during the life of the notes
|
| Call: | Automatically at par plus contingent coupon if VMWare shares close at or above initial price on a quarterly review date other than first and final dates
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| Initial share price: | $83.94
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| Trigger price: | $58.78, 70% of initial price
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| Pricing date: | Feb. 17
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| Settlement date: | Feb. 20
|
| Agent: | J.P. Morgan Securities LLC
|
| Fees: | 1.5%
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| Cusip: | 48125UEJ7
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